Prudential vs Prudential Financial Which Is More Reliable?

Prudential and Prudential Financial are two separate entities, although they share a similar name. Prudential is a British multinational financial services company, while Prudential Financial is an American Fortune 500 company specializing in life insurance, retirement, and investment products. Investors may find it challenging to distinguish between these two companies, but understanding their respective markets, financial performance, and growth potential can help make informed decisions when considering investing in Prudential or Prudential Financial stocks.

Prudential or Prudential Financial?

When comparing Prudential and Prudential Financial, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Prudential and Prudential Financial.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Prudential has a dividend yield of 2.52%, while Prudential Financial has a dividend yield of 4.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Prudential reports a 5-year dividend growth of -21.72% year and a payout ratio of 64.38%. On the other hand, Prudential Financial reports a 5-year dividend growth of 6.79% year and a payout ratio of 45.82%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Prudential P/E ratio at 66.48 and Prudential Financial's P/E ratio at 10.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Prudential P/B ratio is 3.58 while Prudential Financial's P/B ratio is 1.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Prudential has seen a 5-year revenue growth of 0.07%, while Prudential Financial's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Prudential's ROE at 4.50% and Prudential Financial's ROE at 14.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.69 for Prudential and $119.88 for Prudential Financial. Over the past year, Prudential's prices ranged from $15.11 to $22.93, with a yearly change of 51.75%. Prudential Financial's prices fluctuated between $100.60 and $130.55, with a yearly change of 29.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.